Ultratech Announces Second Quarter 2010 Results

For the second quarter of fiscal 2010, Ultratech reported net sales of
$31.6 million as compared to $18.6 million during the second quarter of
fiscal 2009. Ultratech's net income for the second quarter of 2010 was
$3.6 million or $0.15 per share (diluted), as compared to a net loss of
$0.5 million, or a net loss of $0.02 per share for the same quarter last
year.

For the first six months of 2010, Ultratech reported net sales of $59.1
million compared to net sales of $44.3 million in the first six months
of 2009. Ultratech reported net income of $5.6 million or $0.23 per
share (diluted) during the first half of 2010, compared to a net loss of
$0.3 million or a net loss of $0.01 per share for the first half of 2009.

Arthur W. Zafiropoulo, Chairman and Chief Executive Officer, stated, "We
are truly pleased with the solid operating results accomplished during
the second quarter. These results not only demonstrate the operating
leverage and improved profitability achieved in concert with our growth
in revenues, but reflect the current demand for Ultratech's products in
the advanced packaging, laser processing and high-brightness LED (HBLED)
markets coming from both integrated device manufacturers (IDMs) and
foundries."

At July 3, 2010, Ultratech had $173 million in cash, cash equivalents
and short-term investments. Working capital was $200 million and
stockholders' equity was $8.73 per share based on 24,043,431 total
shares outstanding on July 3, 2010.

Conference Call Information

The conference call will be broadcast live over the Internet beginning
at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time on Thursday, July
22, 2010. To listen to the call over the Internet or to obtain telephone
dial-in information for the call, please go to Ultratech's web site at www.ultratech.com.

If you are unable to attend the live conference call, a replay will be
available on Ultratech's web site. If you do not have Internet access, a
replay of the call will be available three hours after the conclusion of
the call and run until 9:00 p.m. Pacific Time, July 29, 2010. You may
access the telephone replay by dialing 800-642-1687 for domestic
callers, (706) 645-9291 for international callers and entering access
code: 84045464.

Profile

Ultratech, Inc. (Nasdaq: UTEK) designs, manufactures and markets
photolithography and laser processing equipment. Founded in 1979, the
company's market-leading advanced lithography products deliver high
throughput and production yields at a low, overall cost of ownership for
bump packaging of integrated circuits and high-brightness LEDs. A
pioneer of laser processing, Ultratech developed laser spike anneal
technology, which increases device yield, improves transistor
performance and enables the progression of Moore's Law for 45-nm and
below production of state-of-the-art consumer electronics. Visit
Ultratech online at: www.ultratech.com.

Safe Harbor

Certain of the statements contained herein, which are not historical
facts and which can generally be identified by words such as
"anticipates," "expects," "intends," "will," "could," "believes,"
"estimates," "continue," and similar expressions, are forward-looking
statements under Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended, that
involve risks and uncertainties, such as risks related to timing,
delays, deferrals and cancellations of orders by customers, including as
a result of semiconductor manufacturing capacity as well as our
customers' financial condition and demand for semiconductors;
cyclicality in the semiconductor and nanotechnology industries; general
economic and financial market conditions including impact on capital
spending, as well as difficulty in predicting changes in such
conditions; rapid technological change and the importance of timely
product introductions; customer concentration; our dependence on new
product introductions and market acceptance of new products and enhanced
versions of our existing products; lengthy sales cycles, including the
timing of system installations and acceptances; lengthy and costly
development cycles for laser-processing and lithography technologies and
applications; integration, development and associated expenses of the
laser processing operation; pricing pressures and product discounts;
high degree of industry competition; intellectual property matters;
changes in pricing by us, our competitors or suppliers; international
sales; timing of new product announcements and releases by us or our
competitors; ability to volume produce systems and meet customer
requirements; sole or limited sources of supply; effect of capital
market fluctuations on our investment portfolio; ability and resulting
costs to attract or retain sufficient personnel to achieve our targets
for a particular period; dilutive effect of employee stock option grants
on net income per share, which is largely dependent upon our achieving
and maintaining profitability and the market price of our stock; mix of
products sold; outcome of litigation; manufacturing variances and
production levels; timing and degree of success of technologies licensed
to outside parties; product concentration and lack of product revenue
diversification; inventory obsolescence; asset impairment; changes to
financial accounting standards; effects of certain anti-takeover
provisions; future acquisitions; volatility of stock price; foreign
government regulations and restrictions; business interruptions due to
natural disasters or utility failures; environmental regulations; and
any adverse effects of terrorist attacks in the United States or
elsewhere, or government responses thereto, or military actions in Iraq,
Afghanistan and elsewhere, on the economy, in general, or on our
business in particular. Such risks and uncertainties are described in
Ultratech's SEC reports including its Annual Report on Form 10-K filed
for the year ended December 31, 2009 and Quarterly Report on Form 10Q
for the quarter ended April 3, 2010. Due to these and additional
factors, the statements, historical results and percentage relationships
set forth herein are not necessarily indicative of the results of
operations for any future period. These forward-looking statements are
based on management's current beliefs and expectations, some or all of
which may prove to be inaccurate, and which may change. We undertake no
obligation to revise or update any forward-looking statements to affect
any event or circumstance that may arise after the date of this release.

ULTRATECH, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

Jul. 3,

Dec. 31,

(In thousands )

2010

2009*

ASSETS

(Unaudited)

Current assets:

Cash, cash equivalents and short-term investments

$

172,577

$

160,341

Accounts receivable

29,063

31,426

Inventories

29,834

25,881

Prepaid expenses and other current assets

5,914

4,163

Total current assets

237,388

221,811

Equipment and leasehold improvements, net

10,904

9,841

Other assets

3,439

2,929

Total assets

$

251,731

$

234,581

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Notes payable

$

6,000

$

6,000

Accounts payable

9,926

7,112

Deferred product and service income

10,650

8,846

Other current liabilities

10,847

6,720

Total current liabilities

37,423

28,678

Other liabilities

4,351

5,935

Stockholders' equity

209,957

199,968

Total liabilities and stockholders' equity

$

251,731

$

234,581

* The balance sheet as of December 31, 2009 has been derived from the
audited financial statements as of that date.